Iran's Steel Output Surges 10%

EghtesadOnline: Iranian steelmakers produced a total of 42.3 million tons of finished and semi-finished steel products during the 11 months to Feb. 19 to register a 10.94% increase compared with last year’s corresponding period.

News ID: ۷۴۶۹۵۶

18 March 2019

The Iranian Steel Producers Association's latest report also shows that semi-finished steel made up 22.69 million tons of the total output, up 13% year-on-year.

Billet and bloom made up 12.95 million tons of all semi-finished production volume while slab output hit 9.73 million tons to register a 22% and 4% YOY rise respectively.

As for finished steel, output increased 8% YOY to reach 19.6 million tons, according to Financial Tribune.

Hot-rolled coil had the lion's share of finished steel production with 7.27 million tons, up 3% YOY.

It was followed by rebar with 7.1 million tons, up 24%; cold-rolled coil with 2.34 million tons, up 9%; coated coil with 1.27 million tons, down 9%; beams with 959,000 tons, down 5%; and “other steel products” with 654,000 tons, down 17%.

Iran’s direct-reduced iron production stood at 24.3 million tons during the period, indicating a 19% rise YOY.

An earlier report by the Iranian Mines and Mining Industries Development and Renovation Organization showed major Iranian steelmakers exported a total of 5.08 million tons of steel during the same 11-month period to Feb. 19 to register a year-on-year decline of 22%.

With a total of more than 1.99 million tons of exports, Khouzestan Steel Company was Iran's biggest exporter of steel.

Iran's export of steel, among other commodities, has come under immense pressure after the imposition of US sanctions last year.

UK-based analysts in Fastmarkets say the new round of US sanctions against Iran are expected to cut Iranian steel exports, gradually leading to lower Iranian steel output.

Although the move is now largely directed at the country’s oil and banking sectors, it is still expected to aggravate the situation in the Iranian steel export market, which had already been struck by the previous set of sanctions imposed by US President Donald Trump’s administration in early August.

The latest round of sanctions was enforced in November.

Trump announced his decision to pull out of the nuclear deal Iran signed with world powers, including the United States, in May.

Shipping problems are said to be the major issue at present.

Under the circumstances, Iranian steel exporters have had to cut prices significantly to attract customers and compensate for the risks involved in trade with the country.